Are you thinking of buying real estate in 2020? If so, you’re probably wondering what real estate predictions and trends are forecasted for this turn-of-decade year. 2019 has been fairly good to sellers in many locales, with high demand for housing and limited supply of houses on the market in many places. Lower-priced “starter” homes have been in high demand everywhere. Does 2020 appear to be more of the same and what should buyers and sellers know about the predictions for the coming year?
Three Trends You Need to Know For Real Estate in 2020
- Mortgage rates will stay low
- Prices will Keep Rising
- Inventory Will Be Tight
Mortgage rates are hovering around 3.75%, which is fairly low, and some institutions have predicted that they will fall even lower in 2020. This is great for both buyers and sellers, as buyers will be more likely to afford a mortgage, and therefore will be buying more, making sellers have a good chance of getting a good price for their home. This may encourage more people to sell, but there are several other issues in the trends that are at play, such as the fact that homeowners are keeping their homes longer than they were five or ten years ago.
Because it will in some ways be a seller’s market, prices for homes will keep rising, which shows the economy is in fairly good shape. Nationally, there are likely to be more demand for homes than there are homes being sold. The shortage of starter-level homes will push up the price on all level homes, as people will be purchasing higher -priced homes than they normally would have, both because of lower mortgage rates and the lack of available starter homes.
Inventory will be tight, so that means homes won’t be on the market very long. This is good news for sellers, but it also means that many sellers are buyers, too, so while they are getting a good price for their home, they will also be paying more for the new home they are buying. Good news for people who wish to sell – it’s time to get with a real estate agent and think about the things that you can fix up to get an even better price out of your home! Buyers, keep working on that credit score – with a low mortgage rate, you’ll want to get the very lowest one you can! If you keep your credit score high, you will be able to get the best mortgage rate possible. It will be a year of needing to act quickly if you see a house you like, so it may be a good idea to be pre-approved for a loan. All in all, much excitement in the world of real estate, so find a real estate agent you trust and can build a great relationship with!
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